3rd Vietbuild expo to open in Ha Noi     

Up to 450 enterprises will showcase their products at more than 1,600 pavilions at the third Vietbuild international exhibition in Ha Noi from November 23 to November 27, following the success of the two previous events.

Nguyen Tran Nam, head of the Vietbuild organising board and chairman of the Viet Nam National Real Estate Association, told a press conference held in Ha Noi on Monday that the five-day exhibition will see the participation of 273 domestic enterprises, 108 joint venture enterprises and 60 foreign enterprises from 22 countries and territories around the world.

The exhibitors will introduce a range of new products in the areas of construction, building, real estate and interior and exterior design. Exhibitors participating in the event will have booths of between 36 and 160sq.m.

Products on show will include modern technologies such as smart home systems and lighting technology.

“Over the past 10 years, the Vietbuild expo has become a bridge connecting and accompanying the construction, building material and property sectors as well as offering co-operation opportunities to businesses,” Nam said.

In addition, the organising board will also hold meetings between businesses, ministries, associations and localities in the northern region to provide them with opportunities to study new construction technologies.

Forums and seminars will also be held within the framework of the event. 

CPTPP to create impetus for textile, footwear industries

Viet Nam’s garment and textiles export turnover hit US$25.2 billion in the first 10 months of 2018. 

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreement is expected to aid Viet Nam’s exports, especially textiles and footwear industries, when it takes effect, according to experts.

One of the key contents of the CPTPP is the removal of 95-98 per cent of tariff lines as soon as the agreement enters into force. The remaining tariff lines will be cut over the next seven years, moves predicted to aid the growth and export turnover of the two industries.

Viet Nam’s garment and textiles export turnover hit US$25.2 billion in the first 10 months of 2018, up 17.1 per cent year-on-year. Meanwhile, footwear exports were valued at $13 billion, 9.7 per cent higher than in the same period last year.

The export turnover of garment and textiles recorded growth in key markets such as the US, the EU, the Republic of Korea, China and member nations of the CPTPP.

According to the Viet Nam Textile and Apparel Association (VITAS), the CPTPP will help Viet Nam accelerate its growth and make the export market more balanced. The zero-per cent tariffs will help the country’s textile and garment industries expand market share in countries with high tax rates.

Viet Nam’s export turnover of the industry is forecast to reach $35 billion in 2018. The figure is expected to climb to $50 billion in 2025.

Experts, however, also pointed out difficulties facing the sector.

The CPTPP sets strict requirements on product origin, a big challenge for Vietnamese enterprises and the textile and garment and footwear sectors, as they are heavily dependent on material sources imported from China, India and other ASEAN countries.

Truong Van Cam, Vice President of VITAS, said the current source of materials for Viet Nam’s textile and garment industry is limited.

The US, the EU and Japan are now the three largest export markets of Viet Nam.

Vietnamese exporters have been advised to continue promoting the support industry, and ensure they can prove the origin of raw materials for production.

For the footwear industry, the CPTPP is also an opportunity for exporters to expand to Chile, Australia, New Zealand, Mexico, Canada and Japan.

Experts said Vietnamese footwear exporters have opportunities to sell products in Japan, a key market for the sector.

If enterprises know how to make full use of the CPTPP, growth in this market is likely to increase, they stressed.

Vietnamese businesses will also have more opportunities in Canada, which will impose a zero import tariff on both leather shoes and handbags immediately.

However, to benefit from this agreement, footwear enterprises will have to overcome considerable challenges.

According to Nguyen Duc Thuan, Chairman of the Viet Nam Leather and Footwear Association (Lefaso), businesses should explore regulations related to customs procedures and logistics of CPTPP member countries, while improving the quality of their products.

The Government should support enterprises by creating a fair playground and minimising administrative procedures to protect Vietnamese firms in the domestic market, Thuan said.

Vu Duc Giang, Chairman of the Board of Directors of Bao Minh Textile JSC, said all production lines of the firm use the most advanced equipment from famous global brands.

Each year, Bao Minh provides more than 35 million metres of high quality fabric for the fashion brands.

The firm has contributed to increasing the supply of raw materials in the country, helping businesses reduce imports of raw materials. 

FastGo to launch service in Myanmar next month

FastGo Vietnam signed a memorandum of understanding with Asia Sun Group on November 14 in Hanoi to launch its ride-hailing app in Myanmar next month.

According to FastGo’s plan to expand its operation to the Southeast Asian region, the company chose Myanmar and Indonesia as its two first overseas markets. Instead of self-deploying services in foreign countries, FastGo will operate with local partners whose financial strength, market intelligence and service ecosystems can provide support.

Speaking at the signing ceremony, FastGo Vietnam General Director Nguyen Huu Tuat said Myanmar’s market has the potential to see rapid growth in the upcoming time, making it a suitable destination for expansion. Asia Sun Group has been one of big groups in Myanmar in different sectors.

“We have a common vision and development strategy,” Tuat said. 

“FastGo would contribute to the electronic service sector and to promoting the private economic sector in Myanmar.”

Win Kaw, Asia Sun Group Chairman, said they were impressed with the rapid development of FastGo Vietnam.

“With FastGo’s technological advantages, innovation and service ecosystem in combination with Asia Sun Group’s deep knowledge of the Myanmar market, we believe that co-operation will bring success to FastGo and add value for customers in our country,” he said.

Launched in June 2018, Vietnamese ride-hailing app FastGo is now present in Hanoi, HCM City, Da Nang, Binh Duong and Dong Nai.

It planned to launch the service in Nha Trang and Quảng Ninh on November 23.

FastGo offers FastCar, FastTaxi and FastBike.

Seafood byproducts add value to fishery industry

Vietnam’s fishery sector should use more seafood by-products such as bones, heads and skin to add value to the industry, experts said at a recent forum in Ho Chi Minh City.

The Vietnam-Norway business forum on processing high-quality products form seafood byproducts was co-held by the Directorate of Fisheries under the Ministry of Agriculture and Rural Development and the Norwegian Embassy in Vietnam on November 14.

According to Tran Dinh Luan, Deputy General Director of the Directorate of Fisheries, said that the country’s high-quality seafood was exported to many countries, and Marine Rest Raw Materials could yield more profits and reduce the need for discharge of waste.

However, Vietnam focuses less on processing seafood byproducts, which have been left out for a long time, causing economic losses and environmental pollution, he noted.

Phan Thanh Loc, Director of VietnamFood, said that such materials account for a large portion of the input in fishery, especially shrimp, and contain a great deal of nutrition.

They can bring great value to firms and sustainable development to Vietnam’s fishery industry, he said.

Vietnamese firms have been using a small fraction of the "rest raw materials" as Vietnamese technologies for processing the materials are still limited.

More research and investment into technologies, as well as trade promotion, are needed to make use of these highly profitable materials, according to Loc. 

Vietnamese factories should not view these materials as waste, but as products and materials for processing, and preserve them more carefully to maintain their high quality.

For the last 30 years, Vietnam and Norway, which are among the top 10 biggest fishery nations in the world, have been working together in the marine industry.

Norwegian firms have been developing technologies and processes to use as much from the fish as possible, or what the industry calls "Marine Rest Raw Materials", to make human and animal food, cosmetics and pharmaceutical products.

Grete Lochen, Norwegian Ambassador in Vietnam, said that fisheries and aquaculture are contributing greatly to the global food supply, but there is a great need to enhance food security, both through sustainable fishing and aquaculture, and by a higher use of ’rest raw materials’.

At the forum, Norwegian firms in the fishery industry expressed their interest in working with Vietnamese firms and looking for local suppliers of high-quality fish and fish products, and buyers of their technologies, such as fish feed, processing technologies, fish oil and fish meal.

Deposits at three major state-run banks stood at VND2,550 trillion (US$110.04 billion), accounting for 46% of total deposits at 28 banks, CafeF reported.

Deposits at 28 banks operating in Vietnam as of September 2018 reached VND5,495 trillion (US$236.88 billion), up VND488 trillion (US$21.04 billion) or 9.76% compared to the beginning of the year.

Among those banks, only a handful witnessed a decline in deposits, including Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank), Tien Phong Bank (TPBank), An Binh Commercial Bank (ABBank), Petrolimex Group Bank (PGBank) and Saigon Commercial Bank (SaigonBank).

However, the decline is insignificant with less than VND1 trillion (US$43.14 million) each. 

Notably, deposits at the three major state-run banks, namely Bank for Investment and Development of Vietnam (BIDV), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietcombank) and Joint Stock Commercial Bank for Foreign Trade of Vietnam (VietinBank), amounted to VND2,550 trillion (US$110.04 billion), accounting for 46% of total deposits at 28 banks.

Of the total, BIDV holds the largest deposit with over VND953 trillion (US$41.12 billion), followed by VietinBank and Vietcombank, reaching VND825 trillion (US$35.60 billion) and VND773 trillion (US$33.35 billion), respectively. 

SaigonBank, the largest privately-run bank in terms of deposits, is reported to hold VND372 trillion (US$16.05 billion), equivalent to 39% of BIDV's. 

All three leading banks also witnessed a high growth rate of deposits in the first nine months of 2018, with BIDV seeing an increase of 10.9%, VietinBank 9.7%, and Vietcombank 9.2%, translating in an interest payment of VND83.5 trillion (US$3.6 billion) in total. 

Upon breaking down, BIDV paid over VND34.6 trillion (US$1.49 billion) in interest, Vietinbank VND30.3 trillion (US$1.3 billion) and Vietcombank VND18.5 trillion (US$798.13 million). 

In the third quarter of 2018, the State Treasury had deposits of nearly VND48.7 trillion (US$2.1 billion) in these three state-owned banks, accumulating a total of VND218.56 trillion (US$9.43 billion).

Considerable opportunities for Vietnamese white-leg shrimp exports to EU

The Europe Union (EU) is the Vietnam's largest importer of shrimp, accounting for 24.7% of Vietnam's total shrimp exports to markets across the world. Exports of Vietnamese shrimp to the EU reached US$648.4 million as of September this year, up 11% over the same period in 2017.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the EU currently imports around 28% of the total shrimp worldwide (in terms of value), with an annual import value ranging from US$6-8 billion. Imports of shrimp into the EU increased from US$5.6 billion to US$6.9 billion in 2017. The exports of Vietnamese shrimp, especially white-leg shrimp, to some markets in the EU can take advantage of opportunities to grow further.

On October 17, the European Commission (EC) submitted for approval the EU-Vietnam Free Trade Agreement (EVFTA) to prepare for the signing and completion of the deal. After the effectiveness of the EVFTA, the import tax on Vietnamese raw shrimp and processed shrimp into this market will be reduced.

The increasing proportion of white-leg shrimp in the EU retail market, in addition to its lower prices compared to tiger shrimp, is providing more opportunities for Vietnamese exports of white-leg shrimp.

In order to boost shrimp sales to the EU, Vietnamese enterprises should increase the number of farms and factories certified for good farming practices and ensuring environmental and social standards while increasing the number of upgraded factories meeting European retail standards.

The UK and the Netherlands are now the two largest importers of Vietnamese shrimp in the EU. Vietnam's shrimp exports to both markets showed positive growth in the first nine months of this year, which increased by 27.6% and 11.6% respectively over the same period last year.

Of the two, the UK is the largest importer of Vietnamese shrimp in the EU, accounting for 27% of Vietnam's shrimp exports to the EU and 6.7% of Vietnam's total shrimp exports to foreign markets. Vietnam's shrimp exports to the UK reached nearly US$176 million in the first nine months of this year, a rise of 27.6% over the corresponding period last year.

Over the last three years, Vietnam shrimp exports to the UK have grown steadily from US$114.6 million in 2014 to US$210.6 million in 2017, a sharp increase of nearly 84%.

Vietnamese shrimp exports to the UK tend to go up with the European country pushing the import of warm water shrimp, replacing cold water shrimp, due to its affordable prices. The UK prefers prawn products such as frozen processed white-leg shrimp, headless PUD shrimp, and frozen IQF raw white-leg shrimp.

The Netherlands is the second largest shrimp import market of Vietnam after the UK among EU countries. In the first nine months of this year, Vietnam's shrimp exports to the Netherlands posted at US$158.6 million, an annual increase of 11.6%. Vietnam is currently the largest supplier of shrimp to the Netherlands, accounting for 37.6% of the total shrimp import value of this market in 2017.

White-leg shrimp accounts for 86% of Vietnam's total shrimp exports to the Netherlands, followed by black tiger shrimp at 10% and other shrimp at 4%. The Netherlands currently has increasing demand for Vietnamese processed white-leg shrimp coded HS 16.

Vietnamese shrimp still maintains its competitive advantages over other competitors in the EU market such as India and Thailand. These rivals are facing declines in shrimp exports to the EU due to problems with quality standards.

Vietnam’s supporting industry qualified for well-developed production

Vietnam’s supporting industry has been keeping up with the pace of global modern production industry, said experts attending the New Value Creation Exhibition 2018, which is taking place in Tokyo, Japan from November 14-16.

Ten Vietnamese supporting enterprises, together with more than 700 foreign firms, brought along various products – ranging from electronics and industrial production to consumer goods – along to the exhibition, which is organised by the Japanese Ministry of Economy, Trade, and Industry.

According to head of the Foreign Trade Agency under the Ministry of Planning and Investment Do Nhat Hoang, Japanese firms have given great compliments to Vietnamese businesses, whose products qualified to break into leading markets like Japan, the Republic of Koea, the US, and the EU.

The businesses from Japan added that Vietnamese companies have made significant advancements, paving the way for them to join the global value chain.

Dinh Xuan Cuong – General Director of An Phat Holdings, the largest Vietnamese firm at the exhibition – relished the prospect of Vietnamese supporting businesses have a place on the global value chain, saying that they have huge potential to cooperate with leading firms from Japan and other foreign nations.

Meanwhile, General Director of the Organisation for Small and Medium Enterprises and Regional Innovation Japan (SMRJ) Shinichi Murai said that Japanese corporations are interested in investing in Vietnam. 

Collaboration will help create new business opportunities for both sides, he added, laying stress on Vietnam’s impressive economic growth and sci-tech development.

The annual New Value Creation Exhibition was initially organised for Japanese firms, however, it has expanded to welcome outstanding small- and medium-sized enterprises from other countries and territories since 2016.

This year’s event revolves around three topics: technique and industry, healthcare and social welfare, and the environment and society. On display are state-of-the-art technologies from the Fourth Industrial Revolution, including smart healthcare, automation, artificial intelligence, and Internet of Things.

It offers opportunities for Vietnamese companies to exchange and expand cooperation with their foreign partners. 

Summit debates bringing finance into digital era
     
Transforming finance in the digital age was the theme of the 48th World Chief Financial Officers Congress held for the first time in HCM City on Thursday.

“The congress is a great opportunity for business leaders to gather, exchange and directly share their knowledge and practices, their intensive financial management skills with experienced finance leaders from other continents,” Nguyen Ngoc Bach, chairman of the Viet Nam CFO Association, said in his opening speech.

“International financial experts will [tell us about] new trends and [provide] insights into the future of the financial sector and the challenges that business leaders and financial professionals are facing in this technological era.”

The two-day congress is the most important summit of the International Association of Senior Finance Managers, and is organised by the Viet Nam CFO Association and Japan Association of CFOs.

Prof Dr Nguyen Thien Nhan, member of the Politburo and secretary of the HCM City Party Committee, spoke about Viet Nam’s five remarkable economic achievements in 32 years of Doi moi (Renewal) process, including high growth and industrialisation.

He attributed them to factors like constant and innovative reform of economic institutions, political and social stability, annual addition of around 1 million workers to the labour force, increasing human resource quality, robust export growth, and increasing FDI.

He also touched on the weaknesses like low productivity, poor infrastructure and impacts of climate change and solutions for eliminating them.

Shwetank Sheel, co-founder of Just Analytics, spoke about the importance of analytics 4.0 for financial executives.

“For financial analysis and reporting most data analysts are dependent on IT resources to prepare or access data and costs organisations billions.

“Excel continues to be the primary tool for data preparation while data analysts are also spending too much time preparing data.

“Critical data is at risk with 74 per cent of data analysts confessing that their individual computers are one of the top three places they store data.

“For strategy and forecasting, we should focus on machine learning revenue forecasting and machine learning accounts receivable forecasting.”

Roy NG, director, SMB segment, Lenovo Central Asia Pacific, spoke how technology can mitigate productivity challenges.

“Workforce productivity is ranked number 1, and 33 per cent of IT and business decision makers agree that investing in better technology to enhance employee productivity helps attract and retain talent.

“The ruinous effects of [system] downtime are an estimated $588 billion a year in the US alone.

“Employees who are frequently interrupted due to downtime reported 9 per cent higher exhaustion rates.

“Making correct technology investments to avoid device failure, unwarranted spending, and unnecessary downtime will help reduce exhaustion and increase revenue per employee.”

He pointed out the three pillars that underpin organisational productivity: deploying modern device technology with advanced connectivity and always-on security features, enhancing device output by extracting the full potential of the devices and enabling better collaboration with connectivity between employees across time zones.

The two-day congress’ agenda is a balance between policy considerations driving (or hindering) global and Asian growth and the transformative potential of digital technologies in responding to the opportunities and challenges they present.

Cybersecurity, blockchain technology, big data, and artificial intelligence (AI) are some of the key topics discussed.

Over 500 business leaders, CFOs, directors, and finance professionals from across the world are taking part the event. 

Japan, VN to deepen cooperation in the new global context     

Japan and Viet Nam should deepen bilateral co-operation, not only in investment and trade but also work to improve relationships in the future, Director of the Central Institute for Economic Management (CIEM) Nguyen Dinh Cung told a forum last week.

Cung was at the CIEM’s Viet Nam – Japan Policy Research Forum in Ha Noi.

He said: “Being the two most active members in one of the world’s most dynamic regions, Viet Nam and Japan need to look beyond cooperation in trade and investment to strengthen bilateral cooperation.”

Nguyen Anh Duong, CIEM’s Macroeconomic Policy Department, said there is significant room to boost the cooperation between enterprises in Japan and Viet Nam.

But he stressed for maximum potential, Viet Nam needed to be more proactive.

“It is important to change the thinking in joining the global value chain. In addition, Viet Nam should also promote multilateral cooperation to facilitate and encourage investment,” Duong said.

Duong pointed out that the cooperation with Japan contributed largely to improving production capacity.

Senior economist Vo Tri Thanh said at the forum Viet Nam remains a top destination for Japanese investors.

Viet Nam needs to renovate its growth model towards innovation and productivity while shifting its policies for attracting foreign direct investment, Thanh said.

“Attracting foreign direct investment should aim at promoting technology transfer, improving capacity and promoting green and sustainable growth,” he added.

According to Mie Oba from Tokyo University of Science, it is important to build regional order, maintain economic order and promote the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and other bilateral and multilateral agreements.

CIEM also organised a conference to discuss opportunities and challenges for Viet Nam and Japan to enhance cooperation and mutual benefits in the Industry 4.0 which would bring technology breakthroughs.

Japan – Viet Nam Economic Partnership Agreement was signed on December 25, 2008 and took effect on October 1, 2009.

The two countries established a strategic partnership in 2009 and upgraded to a comprehensive strategic partnership from 2014.

This year also marks 45 years of diplomatic relation.

Japan has been one of the top investors in Viet Nam with around US$60 billion so far.

It was also an important trade partner with a two-way trade of $33 billion in 2017. The bilateral trade reached $27.8 billion in the first nine months of this year. 

VN, Argentina to boost wine trade     

With an increase of 10 to 12 per cent annually in wine consumption in the Vietnamese market, it is an appropriate time to promote the export of Argentina’s wine to this Southeast Asia country.

The statement was made by Noris Rivarola, co-ordinator of PRO Mendoza, a Commercial Promotion Agency of Mendoza Province in Argentina, at a business to business (B2B) forum held in Ha Noi last week.

The conference was organised by the Argentine Embassy in Viet Nam in co-operation with PRO Mendoza to host delegates from Mendoza, in Viet Nam to promote wine trade and seek potential importers.

Through this event, Vietnamese businesses can meet and negotiate directly with Argentinean partners about importing wine products from Mendoza to Viet Nam.

“Viet Nam is a potential market for wine promotion thanks to its growing economy, big population and good food – a significant factor for drinking wine,” Hugo Stabio, Commercial Director of Argentina’s wine producer Alto Cedro, told Viet Nam News.

According to Hoang Le Giang, general director of Viet Nam’s wine importer SSP Group, the wines of Argentina are not as popular in the Vietnamese market as wine from other countries such as Chile, France, Spain and Italy because Argentina’s wines have not been advertised in the country.

However, Giang revealed his company is going to import a line of Argentinean wine into Viet Nam, and he hoped to find an appropriate partner through the business forum.

Argentina is currently the second biggest trade partner of Viet Nam in Latin America, while Viet Nam is the fifth trade partner of Argentina in the global market.

Last year, bilateral trade between Argentina and Viet Nam reached more than US$3 billion, with Argentina’s exports to Viet Nam reaching $2.5 billion.

Argentina mainly exported animal feed, fur products and cereals to Viet Nam and imported from the Southeast Asia nation some products such as garments, footwear, electronic goods, wood, rubber and coffee.

In the first nine months of 2018, two-way trade turnover hit approximately $2.1 billion. The two countries target expanding the variety of export products from both sides, focusing on fruits in the upcoming time, Carmen Rivero, Secretary of Argentina’s Embassy in Viet Nam, told Viet Nam News. 

A new era in Vietnam-Malaysia business cooperation     

The Viet Nam Business Association in Malaysia (VMBIZ) and the Malaysia-Vietnam Commerce Chamber (MVCC) signed a memorandum of understanding (MoU) in Kuala Lumpur on Wednesday which is expected to create new incentives for business partnerships and economic-trade ties between the two countries.

Under the document, VMBIZ and MVCC committed to supporting the health of the two business communities, trade promotion activities, sharing information and creating a platform for businesses to seize opportunities and enhance their connectivity.

MVCC President Howard Choo said Viet Nam is one of the most dynamic economies in ASEAN and the country’s official ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) would enable the two countries to make new strides in their economic relationship.

MVCC will work together with VMBIZ to realise the ambitious goals in bilateral trade and investment co-operation set by the two countries’ leaders, Choo said.

VMBIZ President Ngo Sy Tuyen said the MoU will allow businesses to accelerate their partnership activities and explore their strengths while enhancing the friendship between Viet Nam and Malaysia.

Addressing the signing event, Vietnamese Ambassador to Malaysia Le Quy Quynh said VMBIZ and MVCC, though established in 2017, have already provided information and supported activities of the two countries’ businesses.

The bilateral trade reached nearly US$9 billion in the past nine months, a rise of 17 per cent from the same period last year. Malaysia is the seventh biggest investor in Viet Nam, with 500 projects capitalised at $12 billion, Quynh said.

Potential for bilateral co-operation remains vastly untapped, the diplomat said, expressing his hope that the MoU will serve as a new driving force for bilateral trade-investment cooperation. 

Ba Ria – Vung Tau seeks to develop high-tech agriculture     

The southern province of Ba Ria-Vung Tau is making efforts to develop high-tech agriculture so that it can grow high-quality products with high yields.

Its Department of Agriculture and Rural Development reported that some 33 organisations and individuals in the province were investing in high-tech agriculture.

They applied modern technologies to improve cultivation on 1,047ha, harvesting nearly 23,600 tonnes of vegetables, melon, grape fruit, banana and pomelo annually.

Besides, some 87 farms equipped with modern know-how have been built in the province to raise pigs and poultry, and they account for 38 per cent of the poultry and over 53 per cent of the pigs raised in the province.

Fifteen aquaculture production facilities are applying modern technologies, the province said.

The province said with many agricultural goods without details of origin available in the market, demand for information about safe agricultural products is huge.

It said consumers lacked information about safe agriculture products while producers of high-quality agricultural produce lack information about the market.

To overcome these challenges, the province regularly organises promotion campaigns to introduce organic and high-tech agricultural products to local consumers.

These campaigns attract lots of consumers, which helps the province further develop the high-tech agriculture sector.

One of the most effective campaigns is a TV programme called “Green Agriculture-Clean Products” jointly produced by Ba Ria-Vung Tau Radio and Television and the departments of Agriculture and Rural Development, Trade and Industry, and Health.

It advertises organic and safe agriculture products as well as local agricultural specialities.

Also in the programme, audiences are told about high-tech agricultural projects. Customers watching the programme can know about places and stores selling organic agricultural products and models that successfully apply modern technologies.

Last year, Ba Ria-Vung Tau organised an investment promotion conference discussing the potential of and opportunities to invest in high-tech agriculture in the province. The conference attracted nearly 300 Government and provincial leaders, experts, investors and business executives.

The conference disclosed plans for developing high-tech agriculture in the province until 2020 with a vision towards 2025 and preferential policies and solicited investment in the sector.

In another development, the Government has approved changes to land use plans for up to 2020 through Resolution No 117/NQ-CP dated September 06, 2018. Accordingly, the lands used to develop modern technologies include nearly 3,900ha in Xuyen Moc District, over 1,000ha in Chau Duc District, nearly 185ha in Dat Do District, and 20ha in Tan Thanh District.

The province has sought investment in high-tech agriculture, and nearly 50 companies have submitted proposals to invest in high-tech agricultural projects on a total of 5,000ha.

It has met with district authorities and other officials to collect opinions to help the investors set up their projects.

When these projects are carried out, the provincial agricultural sector, especially high-tech, will develop strongly, contributing to the development of the province and meeting the demands of locals and visitors. 

French oil firm Total organises start-up contest     

Total Marketing & Services Viet Nam is organising a contest for Vietnamese start-ups with the winner possibly going on to compete in “Startupper of the Year”, a global competition held by French oil and gas company Total S.A.

The “Startupper of the Year” contest in Viet Nam will have five prizes, with the grand prize being a cash award of VND335 million (US$14,369).

The winner will first compete in the Asia Pacific region and the winner there will travel to Paris for the global finale and a chance to meet young global entrepreneurs and experts in the field next March.

Hundreds of applications have been received so far from start-ups in sectors such as construction, IT, environment, and energy.

Investment attraction important to food processing industry: workshop

Attracting investment to expand production and upgrade technology is crucial in developing food processing, heard a workshop to promote investment in the industry held in Ho Chi Minh City last week by the Ministry of Industry and Trade.

Vietnam’s food processing industry has developed strongly in recent years. The country’s annual food consumption value is estimated at about 15 percent of the GDP, and in the last five years, processed food consumption has increased by 9.68 percent a year, and 6.66 percent for the consumption of beverages.

In the first 10 months of 2018, the production index of processed food and beverage industry had a year-on-year growth rate of some 8 percent.

Food and beverages account for the highest proportion in Vietnamese consumers’ monthly spending, at 35 percent.

These figures show Vietnam is a high potential consumer market for processed food and beverages.

Deputy Minister of Industry and Trade Do Thang Hai said the Government has prioritised the processing of agro-fishery-forestry products, with the focus on increasing the proportion of key farm produce and seafood and applying international standards in the production and processing.

Vietnam has also participated in international integration via the signing of economic deals with other countries, which have opened up a broad market for local enterprises, including those operating in food processing, Hai noted.

He added that agreements which soon come into effect such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will help Vietnam’s products expand around the world.

Regarding investment policies, Vu Van Chung, deputy head of the Foreign Investment Department, stated that Vietnam had issued the Investment Law with numerous incentives for foreign investors.

The Ministry of Industry and Trade has worked with the Ministries of Planning and Investment, and Agriculture and Rural Development, as well as local agencies to support investors who want to pour capital into the country’s food processing industry, Chung affirmed.

Workshop looks to connect Vietnam-Hong Kong trade partners

A workshop to promote trade ties between enterprises from Vietnam and Hong Kong (China) was held in Ho Chi Minh City last week by the Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC) in collaboration with the Vietnamese trade office in Hong Kong.

ITPC Deputy Director Cao Thi Phi Van said economic and trade ties between both sides have developed in recent years, with average trade growth during 2013-2017 at 13.7 percent per year. Hong Kong is the sixth largest trade partner of Vietnam.

Most Vietnamese exports to the territory are computers, electronic products and components, cameras and spare parts, telephones and equipment, she said.

As the products are not only consumed in Hong Kong but also shipped to mainland China and other foreign countries, Vietnam has a high trade surplus with Hong Kong.

Meanwhile, Vietnamese Trade Counselor in Hong Kong Nguyen Duy Kien said Vietnamese firms have advantages to export to Hong Kong that purchases a huge amount of commodities abroad for business activities.

Simple import procedures and zero-trade-barrier offers are among the benefits, he underlined.

In addition, as an Asia business hub, trade-fair capital and convention centre, Hong Kong attracts plenty of international buyers and suppliers, thus, Vietnamese enterprises should enhance trade promotion campaigns in the area to improve connectivity with markets worldwide.

Experts at the workshop said Vietnamese businesses should stay prudent when doing business with Hong Kong- a hot spot for international trade fraud. To eliminate risks, they must pay attention to examining their trade partners’ legal status, credit and delivery ability.

Furthermore, they were advised to be vigilant of lucrative orders from new partners, and to choose rational modes of payment to avoid loss.

Netherlands shares experience in food safety management

Dutch food experts shared their experience in building and managing food safety system at a conference in Ho Chi Minh City last week.

The Netherlands is the world’s second-largest exporter of foodstuff and agricultural products and the biggest centre of food and farm produce research.

The country’s industrial sector produces 80 percent of the equipment for its poultry processing and much of the world’s equipment to produce cheese. The Netherlands is one of the biggest producers of technology tools for food processing.

As one of the five most competitive economies in the world, the Netherlands is also a major distribution centre for Europe. Meanwhile, Vietnam and the European country have shared long-term cooperation, and the Netherlands is Vietnam’s second-biggest European trade partner.

Willem Schoustra, Dutch Trade Councillor in Vietnam, said the Netherlands has become one of the 10 leading investors of Vietnam. The two countries share many similarities, as both are strong exporters of farm produce, he said.

He stated the Netherlands hopes to share specialised knowledge and technology in sustainable agricultural production with Vietnam.

As the honorary country of the Vietnam Foodexpo 2018, the Netherlands has introduced various food products and food processing technologies, giving business opportunities for Vietnam and regional markets.

Notably, the “Holland Pavilion” and several events throughout the exhibition have created chances for the business community to access production and management models for high quality products.

Hardwick Tchale, an expert from the World Bank, said food safety is significant to Vietnam, due to rapid urbanisation and population. He said Vietnam should seek to evaluate food safety and risks, especially in big cities like Hanoi and Ho Chi Minh City.

Experts at the conference recommended Vietnam consider food safety one of the leading criteria for a product to be sold at home or exported.

At the same time, it is necessary to apply technology in food production and processing, while encouraging producers to abide by food safety regulations, and strengthening communications to provide information to businesses and consumers in food safety.

While trade tension mounts, confidence in APEC remains high

Business leaders across the Asia-Pacific remain confident that their companies’ revenues will grow over the next 12 months, despite increasing trade frictions. Besides, Vietnam and China are top targets for cross-border investment.

In its latest survey of 1,189 business leaders across the 21 Asia-Pacific Economic Co-operation (APEC) economies, PwC found that 35 per cent were very confident of revenue growth, down slightly from 37 per cent a year ago, while a net 51 per cent plan to increase investments over the next year.

PwC carried out the survey in the lead up to the APEC CEO Summit which takes place this week in Port Moresby, the capital of Papua New Guinea.

Business leaders in the United States and Thailand were among the most confident, with 57 and 56 per cent ‘very confident’ of revenue growth, while respondents in China and Mexico – two of the largest trading partners of the US – showed below average confidence at 25 and 21 per cent.

In comparison, 33 per cent of respondents in Vietnam indicated that they are ‘very confident’ of their companies’ short-term growth prospects, with another 48 per cent being ‘somewhat confident.’ International trade is likely to continue being a source of growth for Vietnam-based firms, including 40 per cent expecting an increase in revenue opportunities thanks to new bilateral trade agreements and 34 per cent anticipating such opportunities to arise from new multilateral agreements.

In addition to being positive on revenue growth, a net 51 per cent of business leaders in the APEC are planning to raise levels of investment, up from 43 per cent two years ago. The biggest winners across the APEC from foreign investment will be Vietnam, China, the US, Australia, and Thailand, with Vietnam holding the top position for the second consecutive year.

The employment market is also looking positive with 56 per cent of business leaders in the APEC (also 56 per cent in Vietnam) creating more jobs and only 9 per cent (Vietnam: 14 per cent) actively reducing headcount as a direct impact of technology on their workforce.

However, the right talent is not always readily available and business leaders are struggling to find the people that they need with the right skills and experience, PwC’s survey shows. The gap is felt acutely across science, technology, engineering, and maths (STEM) skills with 65 per cent of APEC business leaders (Vietnam: 76 per cent) stating that their governments need to do more to train STEM professionals and only 14 per cent (Vietnam: 4 per cent) feeling their government is doing enough in this area.

This sentiment was also reflected when business leaders were asked what could be done to make growth more inclusive for more people across the APEC. The number one factor that business leaders identified was expanded access to high-quality education at all levels followed by improved transport.

“The issues of training and education are very clearly on the top of the agenda for business leaders in the APEC, giving a clear message to heads of state as they meet this week in Port Moresby about what more help could be given to businesses to secure long-term success,” said Raymund Chao, who heads the PwC delegation at the APEC Leaders’ Week in Papua New Guinea.

APEC business leaders are also well aware of the need to invest more in becoming digital. With the internet economy projected to reach over $200 billion in Southeast Asia alone by 2025, the top two investment priorities for business leaders are digital customer interactions and digital skills for their workforce.

“When asked what policies are needed in order for Vietnam to advance in the digital economy, Vietnam-based CEOs ranked ‘improvements to the digital infrastructure’ at the top. While businesses need to determine their infrastructure requirements and communicate them, the government's role is to understand these requirements and introduce policies and regulations for the sustainable development of digital infrastructure,” said Dinh Thi Quynh Van, general director of PwC Vietnam.

Business leaders also know they need to do more when it comes to being digital. Only 15 per cent of business leaders describe their use of Artificial Intelligence (AI) as highly competitive, while 33 per cent do not use AI at all. The companies that describe themselves as highly competitive at AI are clear on what they need to do to build on their perceived lead: increase investments, build more capability in AI, and invest in local startups.

However, while technology can provide part of the answer to sustainable growth, it also presents challenges in the new trade environment with moving data across borders identified as the area where businesses have experienced the biggest increase in new barriers in the last year – 20 per cent – up from 15 per cent in 2017.

“As the APEC’s businesses become more digital and embrace new technologies such as AI, data flows will increasingly become the fuel that will drive global trade. Dealing with concerns about increased barriers to data flow will remain a priority for business for some time,” added Raymund Chao.